US equities rebounded well on Monday led mainly by good gains in the technology sector. The Nasdaq surged 280.63 points or 1.6 percent to 18,007.57, the S&P 500 jumped 59.41 points or 1.1 percent to 5,564.41 and the Dow rose 127.91 points or 0.3 percent to 40,415.44. The strength on Wall Street came as tech stocks regained ground following the steep drop seen last week, which saw the Nasdaq plunge by 3.7 percent. Tech sector leader Nvidia (NVDA) helped lead the way back to the upside, spiking by 4.8 percent after plummeting by 8.8 percent last week.
Stocks also moved higher after President Joe Biden announced his decision to drop out of the presidential race and endorsed his Vice President Kamala Harris. Biden has been under pressure to step aside after his disastrous debate performance raised questions about his fitness to serve another term as president. While Republican nominee Donald Trump is seen as a more pro-business candidate, his return to the White House could also lead to increased trade tensions with China.
Investors now look ahead to Tuesday’s US economic docket for Existing Home Sales and the Richmond Manufacturing Index. The market focus, however, will remain glued to Thursday’s release of the Advance US Q2 GDP print and the US Personal Consumption Expenditures (PCE) Price Index data on Friday.
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First Published: Jul 23 2024 | 10:42 AM IST